The presidential flag is of particular historical interest. The story began
in 1924, when the Army Officers' College was established in Whampoa, near
Canton (Guangzhou), China, with Chiang Kai-Shek appointed as Commandant
(headmaster). The College adopted a red flag, with the white sun on a blue
disc at the centre of the flag. (This flag is still used by several military
colleges in Taiwan.) When Chiang became the president of China in 1928, it
seemed natural for him to adopt a presidential flag which reflected his
connection with the Whampoa College. Hence a flag similar to the Whampoa
College flag, but with the addition of yellow borders, became the presidential
flag.Miles George Li, 15 June 1999

The Presidential Flag was renamed "Commander-in-Chief
Flag" on January 3,
1986. The yellow border became narrower and fringed.Tai Yu-liang (Dai Yuliang), 19 March 2014

According to the Government documents, this flag was declared on Sept. 15,
1947 and later instituted as an appendix to the Act of Ensign of the Republic of
China Navy. The Act was invalidated on Jan. 3rd, 1986.
This insignia was abolished with invalidation of the act and no longer has been
used thereafter.
Today, when the vice president represents the president to visit or inspect the
troops, the President's Standard will be run up the flagpole.Akira Oyo, 17 February 2014

Included in the
draft Act were the proposed flags (all eventually adopted). This is followed
by the old Acts of Ensigns of the Army (1953), Navy (1950) and Air Force (1948).
Two notable points on the draft Act: Firstly, as the draft Act points out, many
of the flags as prescribed in the old Acts were long obsolete. (For example: to
the best of my knowledge, the Army and Air Force rank flags were changed way
back in 1960, whereas the Air Force badge was changed from yellow to silver in
1981.) Secondly, the new Act leaves the design of the rank flags to the Ministry
of National Defense, the reason being that the Armed Forces hierarchy are too
complex for the Act to cover completely. In practice, the basic format of the
rank flags have remained largely unchanged since 1960.Miles Li, 18 February 2014